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Thinking about your first home? We’ve got you

Buying your first home is exciting, but if you’re feeling a bit overwhelmed as well, you’re not alone. When there’s a whole heap of new terminology, big decisions to be made and one of the biggest financial commitments to make, is it any wonder?

That’s why we’ve created this guide. It walks you through the process step by step, from working out what you can afford to getting those keys in your hands.

Work out your budget

Before you start attending open inspections or browsing listings, it helps to get clear on what you can afford.

What it involves

At this stage, you’re working out:

Look closely at your finances

Review your income, spending and existing debts. This includes regular bills, groceries, transport, subscriptions and debts such as:

Existing debts can affect how much you may be able to borrow, so reducing them before you apply may help strengthen your position.

Tip: Use our budgeting planner

Use our budgeting planner to get a clearer picture of your overall spending and where your money is going each month.

Save for a deposit

Once you understand your finances, you can work out how much you can realistically save and how long it may take. Saving for a deposit can feel like a big goal, especially while managing everyday expenses, but building consistent habits can make a real difference over time.

What it involves

A regular savings plan can help you stay on track. Some ways to build your deposit faster may include:

Even small, regular contributions can add up over time. It can also help to set a savings target and break it into smaller milestones so the process feels more manageable.

Tip: Use our savings planner

Use our savings planner to help you get started and stay on track with your deposit goals.

How much deposit do I need?

A 20% deposit is often seen as ideal, but it’s not the only option. A 20% deposit keeps your Loan to Value Ratio (LVR) at 80% or below. A lower LVR usually means less risk for the lender, which can improve your borrowing options.

If your deposit is smaller, you may still be able to buy, but you may need to pay Lenders Mortgage Insurance (LMI).

You might be wondering...

Do I need a 20% deposit to buy my first home?

No. While a 20% deposit is often considered ideal, many first home buyers purchase with a smaller deposit. If your deposit is below 20%, you may need to pay Lenders Mortgage Insurance (LMI).

What upfront costs should I plan for?

In addition to your deposit, you may need to budget for:

Government schemes and support

You may also be eligible for government support, such as first home buyer schemes, grants or stamp duty concessions. Rules vary between states and territories, so it’s important to check what applies to your situation before you buy.

Home Guarantee Scheme

The Australian Government’s Home Guarantee Scheme helps eligible home buyers purchase a property with a smaller deposit.

Under the First Home Guarantee, eligible first home buyers may be able to buy a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI), because part of the loan is guaranteed by the government.

There are eligibility criteria, property price caps and limited places available each financial year.

As a participating lender, we may be able to help you access the scheme if you’re eligible.

Help to Buy Scheme

The Help to Buy scheme is a shared equity program designed to help eligible Australians purchase a home with a smaller deposit and lower loan amount.

Under the scheme, the Australian Government contributes an equity share towards the purchase of the property, which means you may need to borrow less and could reduce your repayments.

Eligibility criteria, income limits and property price caps apply. As a participating lender, we may be able to support eligible customers through the Help to Buy scheme.

Other support that may be available

Depending on where you live, you may also be eligible for:

Because government schemes and incentives can change over time, it’s worth checking the latest eligibility requirements before you buy.

Other ways to strengthen your position

Some buyers get help from family. If a parent or family member contributes money towards your deposit, the lender will usually need confirmation that it’s a genuine gift and does not need to be repaid. Another option is a guarantor arrangement. This is when a family member supports your loan using equity in their own property. It may help you buy sooner, but it also means they take on risk if you cannot keep up repayments.

Understand your borrowing power

Once you understand your savings position and any support available, the next step is working out how much you may be able to borrow.

How much you may be able to borrow depends on your income, expenses and debts. Lenders also assess whether repayments would still be affordable if interest rates rise. Lenders call this ‘serviceability’.

Borrowing limit vs comfort level

There’s often a difference between the maximum amount you could borrow and the amount you’d actually feel comfortable repaying each month.

Tip: Use our borrowing power calculator as a guide

Online calculators can give you an estimate of how much you may be able to borrow. They’re useful for planning, but they’re only a guide until you receive pre-approval.

Once you understand your budget, deposit and likely costs, the next step is pre-approval.

Get pre-approval

Pre-approval is one of the first major steps in getting a home loan.

What it involves

How pre-approval works

You apply to borrow money, and the lender reviews your income, expenses, debts and savings. If everything looks suitable, you may receive pre-approval for a certain amount. Pre-approval gives you a clearer budget. It can help you focus your property search and feel more prepared when you’re ready to make an offer.

Get your paperwork ready

Having these documents ready can help make the process quicker and smoother.

Income

Savings

Existing debts

Deposit support (if relevant)

Pre-approval doesn’t lock you in. It simply confirms that, based on what the lender knows about your financial position at that point in time, you may be approved, as long as nothing changes and the property also meets lending criteria.

It’s an important step because it gives you a clearer budget, helps narrow your property search and means you’re better prepared when the right place comes along.

You might be wondering...

How long does pre-approval last?

Pre-approval timeframes vary between lenders, but many are valid for around three to six months.

Does pre-approval guarantee I’ll get the loan?

No. Final approval still depends on the property meeting lending criteria and your financial situation remaining stable.

Can I make an offer without pre-approval?

You can, but pre-approval can give you more confidence about your budget and may make the buying process smoother.

Understand your loan options

Fixed or variable home loan: what’s the difference?

A fixed rate means your interest rate stays the same for a set period of time, usually several years. Your repayments stay the same too, which can make budgeting easier.

A variable rate can move up or down. If interest rates fall, you may pay less interest and your repayments may reduce. But if interest rates rise, your repayments can increase.

Some people prefer the certainty of a fixed rate, while others prefer the flexibility of a variable rate. It can help to think about how your budget would cope if rates rose by 2%.

What is an offset account?

An offset account is an account linked to your home loan. The money sitting in that account reduces the amount of the loan that interest is calculated on.

For example, if your loan is $500,000 and you have $20,000 in your offset account, you’re only charged interest on $480,000.

What is redraw?

Redraw lets you access extra repayments you’ve already made on your home loan, subject to your loan terms.

An offset account keeps your savings separate while reducing the interest charged on your loan. They work differently, but both can help reduce interest over time.

You might be wondering…

Which is better: fixed or variable?

There’s no one-size-fits-all answer. Some people value the certainty of fixed repayments, while others prefer the flexibility of a variable rate.

Do I need an offset account?

Not necessarily. Whether an offset account is worthwhile depends on how much savings you expect to keep in the account and the features available on your loan.

Can I use both offset and redraw?

Some loan products offer both features, although availability and conditions vary between lenders.

Find the right property

With pre-approval sorted, this is where things start to feel real. You can begin attending open inspections, narrowing down your options and getting a clearer sense of what feels right.

What it involves

Let’s go house hunting

With so many properties available, it helps to get clear on what matters most.

Think about:

It can help to write down your must-haves and nice-to-haves so you stay focused, even if you fall in love with a property.

When it comes to price, don’t rely only on the asking price or price guide. Look at similar properties in the same area that have sold recently.

If possible, visit more than once and at different times of day. Traffic, noise and the overall feel of an area can change significantly.

You might be wondering...

How do I know what a property is really going to sell for?

There’s no perfect way to know in advance, but recent comparable sales are usually the best guide. Look at similar properties sold in the last few months and pay attention to differences in size, condition and location.

Should I get a building and pest inspection before making an offer?

If you’re serious about a property, it’s often a good idea. It can uncover issues that aren’t obvious during an inspection.

In some cases, you may choose to make a conditional offer first, subject to satisfactory reports.

Before making an offer, it’s also a good time to choose a conveyancer or solicitor if you haven’t already. They can review the contract and help you understand any conditions before you commit.

Make your offer

Found a property you love?

You might have been house hunting for five days, five weeks or five months, but once you find the right property, the process can move quickly. Before making an offer, it’s worth doing a few important checks so there are no surprises later.

What it involves

This is the point where emotions can run high, so preparation goes a long way.

If it’s an older property, look closely for structural issues. Cracks, water damage or signs of movement can point to bigger problems.

Making the offer

You’ll usually make your offer in writing through the real estate agent. How much you offer will depend on the market, how many other buyers are interested and your own budget.

For a private sale, you may be able to make your offer conditional, for example subject to finance, building and pest reports, or contract review. Conditions can give you added protection while final checks are completed.

At auction, it’s different. Bids are usually unconditional, so if you win, you’re committed.

That’s why it’s especially important to have your finance, contract review and due diligence sorted beforehand.

What happens if your offer is turned down?

It’s disappointing, but it’s also very common to miss out on one or more properties before buying your first home.

If the property still feels right, you can decide whether to increase your offer, as long as it stays within your comfort zone.

If you’re already at your limit, that’s okay too.

It’s also a good time to check how long your pre-approval remains valid. If you’re unsure, speak with your mobile banker or lending specialist.

You might be wondering...

What’s the difference between making an offer and bidding at auction?

With a private sale, you can often include conditions such as finance approval or inspections.

At auction, bids are generally unconditional, which means there’s usually no finance clause and no cooling-off period once contracts are signed.

When do I pay the deposit?

A deposit is usually paid when contracts are exchanged.

The exact amount and timing can vary, so check the contract and confirm the details with your conveyancer.

Get final approval

You’re nearly there

Once your offer has been accepted, the next step is final approval.

This is where the lender completes the final checks and formally approves your home loan for that specific property.

What it involves

At this stage, the lender usually

You may be asked for some final documents.

Once everything is approved, you’ll review and sign your loan documents.

You’ll also need to organise building insurance before settlement if it’s required under your contract or by your lender. It protects the property from the time you become responsible for it, so it’s worth arranging early.

You might be wondering...

How long does final approval usually take?

It varies by lender and property, but for a straightforward application it often takes anywhere from a few business days to around two weeks after the property has been identified and valued.

Delays are more likely if additional documents are needed or the valuation takes longer than expected.

Is there a cost for getting the property valued?

Sometimes. Some lenders cover the cost of a standard valuation, while others may charge a fee depending on the property or loan type. Your lender or broker can confirm what applies in your situation.

What happens if the valuation is lower than the purchase price?

If the valuation comes in lower than the price you agreed to pay, you may need to:

That’s because the lender will usually base the loan amount on the lower of the valuation or the contract price.

Move into your new place

Getting the keys for your first home

Settlement has gone through and the keys are in your hands. At this point, there are a few practical things to organise so you can settle in and stay on top of your budget.

What it involves

Set up your repayments

You can usually choose weekly, fortnightly or monthly repayments. Some people prefer to align repayments with their pay cycle to make budgeting easier.

Review your budget

Now that you’re officially a homeowner, your expenses may shift. Council rates, insurance and maintenance all become part of the picture. It’s a good idea to revisit your budget once you’ve settled in to make sure everything still feels manageable.

Build a buffer

Owning a home comes with the occasional surprise expense. Even small, regular savings can give you breathing room if something unexpected pops up.

Plan improvements slowly

It can be tempting to renovate straight away, but unless something is urgent, it often helps to live in the space first. That gives you time to understand how you actually use it before making bigger decisions.

Tip: Fortnightly repayments

If your loan allows it, paying fortnightly instead of monthly can mean you make the equivalent of one extra monthly repayment over the course of a year.

You might be wondering...

Should I make extra repayments?

If your loan allows it, extra repayments can reduce the interest you pay over time.

You might choose to add a little to each repayment or pay a lump sum when you can.

Just check whether any limits or conditions apply.

What if interest rates change?

If you’re on a variable rate, your repayments may go up or down as interest rates move.

Keeping a buffer in your account can help you manage changes more comfortably.

What support is available if life throws me a curveball?

If your circumstances change and you’re concerned about repayments, reach out early.

Starting the conversation sooner usually gives you more options.

Buying your first home is a major milestone, and it’s normal to feel a mix of excitement and uncertainty along the way.

Taking the process step by step can make it feel much more manageable.

And remember, you don’t have to figure everything out on your own — support is available whenever you need it.

Important information
This guide provides general information only and does not take into account your personal objectives, financial situation or needs. Before making any financial decision, consider whether the information is appropriate for your circumstances and seek professional advice if needed.
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